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What is the lower bound of the call value

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Reference no: EM132694419

Suppose that for a European optionc0r K Between 1 and 1.2Between 1.4 and 1.6Between 1.6 and 1.8

=1.2. S =310

= 10%. T = 0.25

=30n. D=0

What is the lower bound of the call value?

  1. Between 1.2 and 1.4
  2. Between 1.8 and 2.0

Reference no: EM132694419

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